“An all-out trade war seems more likely if nothing changes,” Eskelund said in an interview with the South China Morning Post. “I clearly think that the current trend indicates that it is inevitable..”
He added: “The issue of electric cars has been a distraction for several months from the broader issues happening in trade. The Chinese economy has grown by 40% since 2017, but during that period it has declined.” European exports To China by 30%, I think this is what we should be talking about.”
The newspaper quoted Eskelund as saying, “While Brussels accused Beijing of ‘open protectionism,’ I call for looking at the picture more broadly and taking Europe’s concerns about the Chinese government’s policies seriously.”
The European Commission announced last July that it would impose temporary initial compensatory duties on imports of electric cars from China due to government support for their production.
The actual collection of duties will begin if the European Union makes a final decision to impose import duties, which may happen next November, and until this time, as stated in Brussels, it is still possible to reach an agreement with Beijing and solve this problem.
It is worth noting that the Chinese Ministry of Commerce had previously announced the implementation of temporary anti-dumping measures against trademarks imported from the European Union, effective October 11.
Source: South China Morning Post
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Escalating Tensions: The Looming EU-China Trade War
As the world grapples with the complexities of globalization, the threat of a trade war between the European Union and China looms large. According to recent statements from Jens Eskelund, president of the European Chamber in China, an all-out trade war seems increasingly likely if current trends persist [[1]]. This sentiment is echoed by Eskelund’s remarks in an interview, where he stated that “an all-out trade war seems more and more likely if nothing changes” [[3]].
The underlying causes of this tensions are multifaceted. China’s plan to circumvent Western tariffs by establishing factories around the world has been interpreted as a provocative move, potentially escalating the trade dispute with the West [[1]]. This expansion is seen as a strategic attempt to counterbalance the impact of Western sanctions on China’s economy.
Meanwhile, mounting tensions between the EU and China have been brewing for some time. The situation has been exacerbated by legitimate concerns about trade practices, intellectual property rights, and market access in both countries [[2]]. The European Chamber in China has been vocal about these concerns, with Eskelund warning that a full-blown trade war is now “unavoidable” if no changes are made [[3]].
The stakes are high, with both parties standing to lose from a prolonged trade war. The EU and China are among the world’s largest trading partners, with significant economic interests at play. A trade war would likely result in higher tariffs, reduced trade volumes, and potential supply chain disruptions.
So, what can be done to mitigate this crisis? Eskelund and other stakeholders have called for a renewed focus on dialogue and cooperation. By addressing legitimate concerns and working towards mutually beneficial solutions, the EU and China may still be able to avert a full-blown trade war.
However, the clock is ticking. As tensions continue to escalate, the prospect of a trade war between the EU and China seems increasingly plausible. Only time will tell if diplomacy and reason can prevail, or if the world will be plunged into a damaging and protracted trade conflict.
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